Even though you work behind the scenes, you’re the life of the party. You bring clients’ events to fruition with careful planning, coordinating and troubleshooting. But in the rush of pulling off yet another grand event, you may be forgetting something: business insurance for party planners.

It’s easy to procrastinate finding a policy when the pile of paperwork on your desk rivals Mt. Everest and your to-do list is always growing. But protecting your livelihood before an accident occurs can make or break your event planning company.

Not convinced? Here are five scenarios that illustrate exactly why party planners need business insurance.

A client trips over an extension cord and fallsPulling together a full-fledged event involves many moving parts—emphasis on the moving. What happens if a client trips over an extension cord and falls on their final walkthrough before the event? Suddenly they’re threatening to sue for the cost of an emergency room visit, broken arm and additional suffering.

According to Business & Industry Connection Magazine, the average cost for a slip, trip or fall is approximately $20,000, while the average cost of defending a business against the claim is closer to $50,000. Without general liability insurance as a backup, you’ll face a potentially lengthy legal battle and staggering damages.

Your commercial headquarters floods, forcing you to relocateA pipe in your office bursts, soaking your work stations and in-house supplies. You need to vacate the premises while plumbers and cleaning crews address the situation. Where can you go? How can you afford to occupy a new space when you’re still paying bills for your existing one? If you have Business Owners Policy (BOP)—which bundles general liability coverage with property insurance—that includes business interruption insurance, it will cover some of these significant costs in the interim.

Your client claims you under-delivered on promisesParty planners can and do face lawsuits from disgruntled clients. One couple sued celebrity wedding planner
David Tutera, alleging he failed to show up at their destination wedding to finalize plans. This left them scrambling to make last-minute arrangements. Tutera alleges the bride’s father had called him to tell him money had run out and that he shouldn’t even bother flying overseas. Whatever the truth, the opposing sides faced a court battle to settle the dispute.

Professional liability insurance is the coverage you need to protect against the full cost of defending yourself against claims of professional negligence or misrepresentation.

Your employee falls off a ladder while decoratingYour employee is five feet in the air putting the final touches on the decorations when their feet go out from under them. After a fall like that, they need medical attention and time off work. And it’s your responsibility as an employer to cover your team with workers compensation—often a legal requirement, depending on state.

One of your commercial vans sideswipes another vehicleYour employee misjudged the distance between the commercial van they were driving and another vehicle merging onto the highway. The result? Your company is on the hook for repairs. Depending on the level of commercial auto insurance coverage you have, your policy will cover damage to the other vehicle and maybe even your own (with collision or comprehensive policies).

Now you see that no event is complete without business insurance for party planners. Protect yourself and your team with help from CoverHound.